PRIIPS KID on IB

JSOP said:
That's IB. This is how they are. They charge cheap commissions but everything they do is cheap. For those of you who are affected by this KID stuff, change your broker to a US broker that is based in US. That's your only option.
More...
It's very hard if not impossible to change to a US broker based in the US if you are not living in the US. I tried with multiple brokers. Ever since Sep 11 2001 they clamped down.

I feel lucky I can trade with IB (as Ameritrade, Schwab etc said no way if not American or living there). I just have to change from IB UK to IB US. Pain in the a** though and the European regulators are as dumb as.... Good on the UK for leaving.
 
raf_bcn said:
They were not prepared. I called to the trading desk for the first time till I am trading. It was a surreal conversation.
My position were autoliquidated while they were trying to understand the issue.

I had a long poition in Spy, which was causing a margin call, and the system didn't allow me to close the position.
In the Order Entry window didn't appear the Buy and sell buttons.

And also through the Strategy Builder window I was not able to enter a combo order involving Spy an options on Spy.
I don't understand why, as we are still allowed to trade Spy options.

When you guys talk about the prospectus, What do you mean ?
Also the IB custumer service have told me that until I recive the proepectus I won't be able to trade Spy. But I have received the SPY
prospectus in paper several times.
More...
Its not about the prospectus. It is about a 2-3 page summary called a KID required by the EU regulators since 01-01-2018. A new thing,
 
Humble Investor said:
Retail traders have to satisfy two out of 3 conditions listed below:

1. The investor has carried out 10 or more significant transactions a quarter over the past year
2. The size of the investor's portfolio exceeds EUR 500,000
3. The investor works or has worked in the financial sector for at least one year

IB will probably come up with a questionnaire over the next few days and we should be back to normal!
More...
That would be good. Where did you get that list from?
 
luisHK said:
Will those who qualify than be charged professional data fees ? Besides We Are talking us based etfs but are all non european based etfs equally unavailable for trading ? Wondering what more products We will discover Are unavailable to ibuk traders
More...
It is about ALL ETFs. It only applies to European investors. It is to "protect" European investors.

Many of the European domiciled ETFS have supplied a KID (2-3 pager) so can be traded. The problem is European domiciled ETFS are generally so much less liquid and with wider spreads and higher fees than the US ones.
 
What are the Options market for the EU version of these ETFs? I'm thinking this regulation does not help protect European investors.

However, to be fair, a large number of European retail investors (mom & pop) do the very simple buy & hold as part of a long term pension fund / retirement plan / etc. And are not active traders (like those on this forum). So there may not even be much of a demand from EU domiciled traders for US domiciled ETFs.
 
  • Like
Reactions: d08
zdreg said:
Retaliation for American tariffs against Europe might have made it easier for European regulators to create these new .rules.
it is all part of the forthcoming trade war.
More...

I'd agree but these were implemented earlier in the year and planned for years beforehand. Western/Southern Europe is a bureaucratic mess, eastern and northern countries should really distance themselves from this "union" but I don't see this happening.
Where I am now (Baltics), much of the economy is dependent on EU funding, it's buying them cars and houses and they will in turn buy the politicians.
 
You must log in or register to reply here.
Back
Top